The global asset management arm of Aviva has rolled out its Sustainable Income and Growth Fund (SIG) in Singapore.
The Aviva Investors’ product is a multi-asset fund which will be available to both retail and accredited investors.
The firm said it hopes to deliver long-term sustainable income for Singaporeans planning their retirement.
The SIG fund was introduced to the European market in July 2019 and will now be available to clients in the Lion City.
The fund aims to provide 5% natural income with long-term capital growth from a portfolio of 80 to 120 securities.
Focus on ESG
Aviva Investors said environmental, social and governance (ESG) criteria are fully integrated into the investment process – excluding tobacco, controversial weapons and energy companies that receive over 10% of revenues from coal.
Francois De Bruin, fund manager of Aviva Investors Sustainable Income and Growth, said: “Companies will be selected on the basis of sustainable business models and underlying revenue streams, with an emphasis on cash flows to deliver compounding interest over time.
“By focusing on assets likely to generate dividends and coupons during drawdown, rather than selling shares for income, the fund will help mitigate the risk of permanent loss of capital when markets are depressed.”
Charles Wong, head of wholesale, Asia at Aviva Investors, added: “The fund seeks to deliver natural income that is sustainable and designed to grow over time, with ESG embedded into the investment process.
“In an environment of volatile markets and concerns over growth, we believe SIG can play an important role in addressing the need of investors in Singapore for long-term regular income with a responsible investment focus.”